Nothing ventured, nothing gained: How the EU can boost growth in small businesses and start-ups

Venture capital can be a lifeline to innovative and growth-oriented start-ups and small businesses in need of external capital. In this ECMI Research Report, the author argues that the recently proposed changes to the Regulation on European Venture Capital Funds (EuVECA) fail to address three important issues that could further boost financing: the extension of the EuVECA Regulation to third-country managers, the reduction of the €100,000 entry ticket, without further compromises on investor protection, and the harmonisation of rules on managing requirements. He proposes a number of measures that could facilitate access to financing for start-ups and SMEs.

Apostolos Thomadakis, PhD, is Researcher at the European Capital Markets Institute (ECMI).